This thesis explores how services shape human capabilities and well-being by integrating the Choice Framework (Kleine, 2013) into Transformative Service Research (TSR). While TSR promotes the capability approach as a means to assess how services influence well-being, it often lacks practical analytical tools. To address this gap, this thesis adopts and adapts the Choice Framework as a structured method for analyzing how services influence individual agency and structural conditions, ultimately enabling or constraining people’s capabilities. Drawing on two empirical studies - one focusing on hedonic well-being in the digital transformation of the Swedish music market (hedonic well-being) and the other on eudaimonic well-being through free educational services for marginalized children in Pakistan (eudaimonic well-being) - this research demonstrates how service characteristics interact with contextual conditions to influence varying degrees of empowerment. The thesis employs a qualitative research design, using semi-structured interviews in both studies, complemented by ethnographic observations in the second. The findings contribute to both theory and practice by offering a capability-oriented analytical framework for TSR and providing nuanced insights into how service characteristics such as accessibility, affordability, flexibility, and mentorship influence well-being. In doing so, the thesis proposes a rigorous yet adaptable model for evaluating how services operate as mechanisms for transformative value, offering guidance for both scholars and practitioners in designing inclusive and empowering services.